Correlation Between Calamos Strategic and Otg Latin
Can any of the company-specific risk be diversified away by investing in both Calamos Strategic and Otg Latin at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Calamos Strategic and Otg Latin into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Calamos Strategic Total and Otg Latin America, you can compare the effects of market volatilities on Calamos Strategic and Otg Latin and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Calamos Strategic with a short position of Otg Latin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calamos Strategic and Otg Latin.
Diversification Opportunities for Calamos Strategic and Otg Latin
-0.56 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Calamos and Otg is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding Calamos Strategic Total and Otg Latin America in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Otg Latin America and Calamos Strategic is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Calamos Strategic Total are associated (or correlated) with Otg Latin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Otg Latin America has no effect on the direction of Calamos Strategic i.e., Calamos Strategic and Otg Latin go up and down completely randomly.
Pair Corralation between Calamos Strategic and Otg Latin
Considering the 90-day investment horizon Calamos Strategic Total is expected to generate 0.94 times more return on investment than Otg Latin. However, Calamos Strategic Total is 1.06 times less risky than Otg Latin. It trades about 0.21 of its potential returns per unit of risk. Otg Latin America is currently generating about -0.1 per unit of risk. If you would invest 1,638 in Calamos Strategic Total on September 3, 2024 and sell it today you would earn a total of 176.00 from holding Calamos Strategic Total or generate 10.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Calamos Strategic Total vs. Otg Latin America
Performance |
| Timeline |
| Calamos Strategic Total |
| Otg Latin America |
Calamos Strategic and Otg Latin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calamos Strategic and Otg Latin
The main advantage of trading using opposite Calamos Strategic and Otg Latin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calamos Strategic position performs unexpectedly, Otg Latin can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Otg Latin will offset losses from the drop in Otg Latin's long position.| Calamos Strategic vs. Calamos Convertible Opportunities | Calamos Strategic vs. Calamos Dynamic Convertible | Calamos Strategic vs. Calamos Global Dynamic | Calamos Strategic vs. Calamos LongShort Equity |
| Otg Latin vs. Jhancock Short Duration | Otg Latin vs. Ab Select Longshort | Otg Latin vs. Maryland Short Term Tax Free | Otg Latin vs. Rbc Short Duration |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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